Fitch upgrades Level 3 to BB-

Fitch Ratings said it upgraded the issuer default rating assigned to Level 3 Communications, Inc. and its wholly owned subsidiary Level 3 Financing, Inc. to BB- from B+.

In addition, the agency upgraded specific issue ratings assigned to Level 3 Communications and affirmed issue ratings assigned to Level 3 Financing.

Level 3 Communications had about $11 billion of consolidated debt outstanding on June 30.

Fitch said the action recognizes Level 3 Communications’ strengthening financial and operating profile as the company completes the integration of tw telecom, Inc. The capture of further operating synergies, coupled with operating leverage inherent within its business model and anticipated changes in the company's revenue mix (i.e. the shift to higher-margin enterprise revenues) will fuel expected gross margin and EBITDA margin expansion during the ratings horizon.

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